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An Insight in to Car Rental Industry
Team: Santosh, Bala, Smitha and Selvi
Introduction to Car Rental Industry Rental Types Rental Process Fleet Management Business Partners Customer Service
Introduction to Car Rental Industry
A brief History
A Nebraskan named Joe Saunders was the first person to start a rent-a-car business when he lent out his Model T (Ford’s Economic Car) to traveling salesmen in 1916. Walter L. Jacobs started his car rental business with a dozen car in 1918 which yielded $1 million annual revenue in 1923 John HERTZ acquired Jacobs’ business and developed "fly-drive" car rental concept by opening franchises at airports Avis, started by an Army pilot Warren Avis, the first car rental operation located at an airport in Detroit Has been extremely competitive since the 1960s and still closely linked with airline transportation
Locations 5.426 315.22B .87B 1.S.000 200. Apex (Australia) US Car Rental Market Company Enterprise Rent-A-Car Hertz Avis Budget Rent A Car U. Avis.000 # U. Enterprise.45B $1.S. Budget.719 2005 $6.111 773 $2.Introduction to Car Rental Industry [Contd…] Most Popular Brands Hertz. Alamo (Europe). Cars in service 592.000 105.4B $3.
Mini Lease .” a qualifying rental will need to take place during a weekend and not during the middle of the week. A qualifying rental is one which meets all qualifications or rules. Round Trip : Qualifying Rentals: Weekly Rental For Weekly Rental user must rent a car for a minimum of five to seven consecutive days. Weekly rentals usually offer substantial discounts over our daily rental rates. For example. For Mini Lease rental user must rent a car for a minimum of 32 consecutive days or a maximum of 330 days. on a coupon that notes “weekend rental only.Rental Types One-Way Rental : Renters pick up a car at one location and return it to a different location Renters pick up and drops off a car at same location.
car classes include Small (compact and economy). Across the entire car rental industry. standard and full-size) and Specialty (convertibles. mini vans and 12-passenger vans). SUV (intermediate.Car Classes SIPP : Standard Interline Passenger Procedures (SIPP).The Association of Car Rental Industry Systems Standards. is the travel industry standard for identifying and describing various types of vehicles. Medium (intermediate and full-size). their features and functions. . Large (premium and luxury). SIPP is also known as ACRISS .
Medium (intermediate and full-size). Large (premium and luxury). SUV (intermediate. mini vans and 12-passenger vans). standard and full-size) and Specialty (convertibles. .Car Class Examples Small (compact and economy).
AM/FM Stereo Radio. Air Conditioning. Automatic Transmission. Ford Focus or similar Features : Air Bags. 4-Cylinder Engine. Features : Air Bags. Automatic Transmission.Types of cars Economy Examples : Chevrolet Metro or similar. 4 Cylinder Engine. AM/FM Stereo Radio. Ford Focus or similar Features for Premium Cars : Air Bags. Dual Mirrors. Intermediate Examples : Ford Escort. PowerAssist Steering. Air Conditioning Compact Examples : Ford Escort. AM/FM Stereo Radio. 4 . Tinted Windows.
Power Locks/Windows. Ford Crown Victoria. Automatic Transmission. AM/FM Stereo Cassette. 6 Cylinder Supercharged Engine. Air Conditioning. Cruise Control. Buick Regal 4 door Features : Anti-Lock Brakes. Automatic Transmission. Dual Mirrors. Tilt Steering Wheel. Ford Taurus. Power 4 door or similar. 4 or 6 Cylinder Engine. Cadillac Deville 4 door or similar. Features : Anti-Lock Brakes. Locks/Windows. Cruise Control. AM/FM Stereo With Cassette Player. Tinted Windows. 6-Cylinder Engine. Dual Climate Zone . Buick Le Sabre Features : Anti-Lock Brakes. Cruise Control. Power Driver Seat. Power-Assist Steering. Power-Assist Steering. Power Locks/Windows. Air Bags. Dual Mirrors. Delay Wipers. Delay Wipers. Air Bags. Leather Interior. Tinted Windows Luxury Examples :Lincoln Town Car. Power-Assist Steering. AM/FM Stereo With Cassette Player Premium Examples : Pontiac Bonneville. Tilt Steering Wheel. Tilt Steering Wheel. Tinted Windows. Tire Inflation Monitor.Full Size Examples :Chevrolet Impala. AC. Air Conditioning. Automatic Transmission. Dual Mirrors. Air Bags.
Power-Assist Steering. Features :Anti-Lock Brakes. 4 or 6 Cylinder Engine. Ford Windstar or similar. Automatic Transmission. Stereo Radio.SUV Examples : Chevrolet Blazer. Features : Power Locks/Windows. Automatic Transmission. Power-Assist Steering. Features : Anti-Lock Brakes. PowerAssist Steering. AM/FM Stereo With Cassette Player. Dual Mirrors. Tilt Steering Wheel. 6-Cylinder Engine. AM/FM Standard car can be a sporty 2 door model. AM/FM Stereo Radio. Ford Mustang coupe or similar. Air Bags. Dual Mirrors. Tinted Windows. Automatic Transmission. Power Locks/Windows. Ford Explorer or similar. Tinted Windows. Standard Examples :Chevrolet Monte Carlo. Air Bags. Dual Mirrors. Air Conditioning. Cruise Control. Air Bags. Cruise Control. Delay Wipers. Tilt Steering Wheel Mini Van Examples : Chevrolet Venture. Tinted Windows. Air Conditioning. Air Conditioning. 6-Cylinder Engine. Delay Wipers .
Ford Mustang convertible or similar. Power-Assist Steering. Secured Spacious 6-foot Trunk. Power Steering. Power Door Locks Pick Up Examples : Ford Ranger or similar. Rear Sliding Glass Window. Automatic Transmission. AM/FM Stereo Radio. Dual Mirrors. Tinted Windows. Rear Anti-Lock Brakes. Features : Air Conditioning.12-Passenger Van Examples : Features : Convertible Examples : Chevrolet Cavalier convertible. Air Conditioning. Dual Mirrors. 4 or 6Cylinder Engine. V6 Engine. Dual AirBags. AM/FM Stereo with Cassette. . Closed Cab. Air Bags. Power Brakes. Tilt Steering Wheel. Power Top. Automatic Transmission. Features : Anti-Lock Brakes.
while on an Avis rental in San Francisco. For instance. 2] International taxes: .Rates and Fee The fee types have been divided into taxes. the sales tax was five percent. User will be subject to local and state taxes when he/she rent a vehicle 1] State and local sales tax: This tax varies by state. common fees. taxes can be high. the sales tax was eight percent. For example. on a Hertz rental in Boston. and Other possible fee Taxes : There's no getting around taxes. For international rentals. and on an Avis rental in London the tax was over 17 percent. a Hertz rental in Paris carried a tax of almost 20 percent.
The amount varies but may be hundreds of dollars. the car has been damaged or misused. For example. whichever is greater. although you may not find all of them on every bill. Airport Concession fees is also called recoup fees. car rental companies operating out of that airport generally pass on this surcharge to their customers in the form of Air-port Concession fee. Knowing what each is may not lower your bill. the minimum deposit is $200 or the total estimated rental charges plus 25 percent. facility usage fees. but do not process the amount unless. When airport authorities impose this fee. but it will make you a more informed consumer. These fees are hard to avoid. Deposit: Rental agencies generally charge customer credit card for a deposit on the rental vehicle. and concession recovery fees. . Airport concession fees: Some airports charge car rental companies a fee for every customer transaction at that airport location. at Budget.Common fees : Here are some of the more common fees that exists in car rental industry. consolidated facility charges (CFC). upon return.
Reimbursement fee/Vehicle license fee: The fee that contributes to the cost of registering and titling the car. Convention center/stadium/sports arena tax: The money from this fee goes towards construction of area centers. Charges of this type are calculated as daily fees or as a percent of the rental rate. For example.Parking tax: Fee that the car rental agency charges to cover the rental of the parking lot. You pay regardless of whether or not you visit the venue. and five percent of the rental rate at San Antonio International airport. This fee is sometimes referred to as a vehicle excise tax. you'll pay $10 at Boston's Logan Airport. usually between three and eight percent of the base rate. . Usually around 30 cents.
this fee is sometimes charged to renters for vehicle registration and licensing fees . Vehicle License Recovery Fee (VLF or VLRF) Industry wide. For instance.Peak season surcharge: Sometimes car rental companies will charge a per-day or flat fee for rentals during popular times. at select locations. a Dollar compact car rental in Boston during August has a $3 per-day peak season surcharge.
Other possible fees One Way Fee (OWF) : One Way Fee (also called Drop-off fee) is the fee for returning the car to a different site than the pick-up location. . while others begin charging late fees immediately.Some companies. Fees of this type can be high Frequent flyer tax: Charges that you incur when earning miles for your rental. at which point most companies charge you for a full extra day. The fee tends to be 7. ex: If you pick up the car at 9 a. you must return the car at 9 a. Late fee: Late fees are charged by the hour until the hourly charges exceed the daily rate. grant drivers a 59-minute grace period. such as Budget.5 percent of the value of the miles. on the last day of your rental..m.m. or charges will be added to the bill. This charge covers taxes the rental company pays on the frequent flyer miles it gives to customers Late Fee rates are charged based on the 24-hour clock.
to be added as a driver for no additional fee. an associate of the renter. a per-mile fee based on the number of miles overall. or in the case of business travel.Mileage fee: Depending on the car rental agreement. or number of miles over the per-day allotted usage. and range from no fee to upwards of $25 per driver. such as Avis. Mileage fees tend to come from smaller rental companies that offer a certain number of miles per day and then charge a fee (usually between 15 and 50 cents per mile) for mileage above the allotment. a mileage allowance entitles the customer to drive a specified distance at no extra charge before a mileage surcharge takes effect. Some rental agencies. Additional drivers fee: Usually a flat fee charged for extra drivers other than the renter. . allow the spouse of the renter. Additional drivers fees vary wildly by location and company. For rentals without unlimited mileage.
Government Admin Rate Supplement: For U. so it is best to call and check with the company before booking. Rental car companies pass on this surcharge to government renters either directly or indirectly. Some companies restrict which neighboring states you can drive in.S. Equipment rental fee: Equipment rental fee is the charges for items such as car seats. the government imposes a $5/day Admin Rate Supplement (GARS/GA) charge for each rental. . Examples of fees for such items include $8 per day for child safety seats from Avis. cellular phones. Government rentals. ski racks. and GPS devices. or have mileage allowances for out-of-state driving. There is no standard for out-of-state fees. and $6 per day for a cell phone and 10 minutes of use from Budget.Out-of-state fee: Fee charged for driving the vehicle outside of the state where you rented it.
also referred to as as LDW (Loss damage waiver): CDW covers damage to the rental car. PEC (Personal effects coverage): PEC is optional insurance that provides protection against theft or loss of personal belongings from the rental car. Rental companies are required by law to provide the minimum level of liability insurance. which varies from state to state. ALI (Additional liability insurance): ALI is optional insurance that protects the renter against claims made by third parties in the event of an accident. . PAI (Personal accident insurance): PAI is optional insurance that provides payment in the event of the injury or death of the renter or an accompanying passenger from a car accident. It is usually an optional feature.Insurance fees : The main types of insurance offered by rental agencies are CDW (Collision damage waiver).
Rental Types One-Way Rental : Renters pick up a car at one location and return it to a different location Renters pick up and drops off a car at same location. For Mini Lease rental user must rent a car for a minimum of 32 consecutive days or a maximum of 330 days. Round Trip : Qualifying Rentals: For example.” a qualifying rental will need to take place during a weekend and not during the middle of the week. A qualifying rental is one which meets all qualifications or rules. on a coupon that notes “weekend rental only. Weekly rentals usually offer substantial discounts over our daily rental rates. Weekly Rental For Weekly Rental user must rent a car for a minimum of five to seven consecutive days. Mini Lease .
(one minute before midnight) the following Monday. and might require a two-day minimum rental. 24-hours To get this rate. Some rates require a Friday or Saturday night stayover.e.Rate Types : Hourly Rates : In most cases the minimum rental charge is for one day and is based on a 24hour period.m. Daily Rates: Weekly Rates : Weekend Rates . user must pick up car any time after 12:00 noon on Thursday and return it by 11:59 p. Rental charge for One Day i. An hourly charge applies till the additional rental period (delay) exceeds one hour. user must rent a car for a minimum of five to seven consecutive days To qualify for a weekend rate.
the renter must rent a car for a minimum of 32 consecutive days or a maximum of 330 days.Rate Types : Monthly Rates : To qualify for a Monthly rate. To qualify for a Mini-Lease rate. Monthly rentals usually offer substantial discounts over weekly rates. Mini-Lease rentals usually offer substantial discounts over monthly rates. Mini Lease Rate . the renter must rent a car for a minimum of 28 consecutive days or a maximum of 31days.
Why Customers Rent Cars ? Renting a car can enhance the flexibility of any trip Business OR Leisure . • .Car Rental Process.
Direct Booking through Agents. Corporate Portals.Different modes of Reserving a Car Car Rental Companies are trying to make more flexibility to Customer by Providing the different Channels by Which a Car can be reserved. 1. Customer can call up the reservation Agent and book the car. The customer can go online at the different Portals and shop for the rates and the availability of car and can book the car himself by giving all the necessary details. . 2. Confirmation numbers will be provided to the Customer via email or Phone.
: Priceline. • Through GDS ( Global Distribution System) These are main service providers that maintains information about the different services and Pricing given by different Car rental Industries . Portals which gives a Comparison of the Pricing of Corporate Portals These are Portals which gives comparison of the pricing of the cars provided by the different car Rental companies in one shot. E.Hotwire etc. Galileo and Sabre are known in Car Rental Industry. .g.3.so that Travel Agents will be benefited the most.
Credit card and can Opt for a new Insurance or Change the Insurance with the booking and then signs the Rental Contract. In booking process Reservation system will communicate to fleet system and confirms the Car. Different Steps in Renting a Car Book a car through any of the Reservation Channels and get the Confirmation no. and shows his reservation no. Counter Agents Check for the Reservation and Confirms to the Customer. Customer has to Show the Driver’s license .) Customer on the Pick up date gets to the Rental Counter . .
After signing the Rental contract Customer takes the car from Rental Location. Customer makes the Payment . (Say if additional mileages he has traveled) Consoles for Preferred Customers Some Car Rental Companies provides an easy way of picking up the car for their preferred Customers. System placed in the booth will communicate to the main Database and will get Refreshed at a particular stipulated time. On the Return date for that Particular Reservation . Process is A booth will be placed near car Rental Location. . This is available only in selected Locations like Airports.Customer returns the car and make remaining payments.
System placed in the booth will communicate to the main Database and will get Refreshed at a particular stipulated time. Customers check against the Confirmation number which parking lot a car is placed. Customers fill the Vehicle identification tag and provide drivers License and take the car. .
Customer Books a car and specifies his reservation details and preferences Customer arrives at the Pick up date at the Rental Counter Inquires about his reservation Customer shows his Driving License . Credit ID and opts for the Insurance and signs the Rental Contract Becomes Reservation Rental Contract Customer Drives the car from the Rental Location Customer Returns the Car and Settles his remaining Payment Condition of the Car is checked and the number of miles is noted .
.( Exceptions are there if car conditions are so good).Fleet Management Back office Operations of a car rental company deals with Purchase Maintenance and Auction of fleets. As per normal industry standard fleets that cross 15 – 20K miles will be auctioned. After every Car Rental corresponding fleet is send for Servicing.
Online booking engines compare the prices across the popular Car rental companies for the customers Affiliates promotes the Car Rental business by providing a link to the car rental website to do online reservation. For ex.Business Partners and Affiliates Airlines Hotels Online booking engines. travelocity. expedia. etc. gets commission for every reservation made from the Affiliates’ web site .
and the car rental company receives the flight time. The car rental company requests a flight arrival time from the airline. for example. the airline responds with a flight time." Through these partnerships. we find out which hotels are available in the area in case you need a place to spend the night. "If your flight is going to be very late. customers can earn miles or points and enjoy special discounts Customers can provide their airline or hotel account number at the car rental counter and provide frequent traveler information to obtain points / miles to rental . Now let's suppose the car rental company wants to make a special offer. it tells its customers.Business Partners and Affiliates [Contd…] Airlines and Hotels are the key business partners for Car rental industry Airlines and Hotels are interconnected with the Car rental industry in many ways.
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